Question

The following is the trial balance of Jackie Chong Trading as at 31 March 2016:

Particulars	RM	RM
Inventory in 1 April 2015 Purchases and sales Carriage outwards Return outwards Wages and salaries Rent paid Delivery expenses Discount allowed and received Insurance General expenses Premises Trade receivables and payables Furniture and fittings Cash at bank Cash in hand Drawings Capital	17,600 69,185 1,570 10,240 3,015 624 216 405 318 20,000 14,320 2,850 2,970 675 7,620 ______ 151,608	91,920 640 88 8,160 50,800 151,608

Inventory as at 31 March 2016 was RM10,700.

Required:

1. Prepare a Statement of Comprehensive Income of Jackie Chong Trading for the year ended 31 March 2016

(15 marks)

2. Prepare a Statement of Financial Position of Jackie Chong Trading as at 31 March 2016

(10 marks)

(Total: 25 marks)

Answer 1

Trial Balance is not aligned correctly in the question. Hence aligning it for convenience.
Jackie Chong Trading
Trial Balance as at 31 March 2016
Particulars	Debit	Credit
Inventory on 1st April, 2015	17,600
Purchases	69,185
Sales		91,920
Carriage Outwards	1,570
Return Outwards		640
Wages and Salaries	10,240
Rent paid	3,015
Delivery expenses	624
Discount allowed	216
Discount received		88
Insurance	405
General expenses	318
Premises	20,000
Trade receivables	14,320
Trade payables		8,160
Furniture and fittings	2,850
Cash at bank	2,970
Cash in hand	675
Drawings	7,620
Capital		50,800
	151,608	151,608

Jackie Chong Trading
Statement of comprehensive income
For the year ended 31 March 2016
Particulars	Amount	Amount
Sales		91,920
Cost of goods sold:
Opening Stock	17,600
Add: Purchases less returns (69,185-640)	68,545
Less: Closing Stock	(10,700)
		75,445
Gross Profit		16,475
Other Income: Discount received		88
TOTAL INCOME		16,563
Operating expenses:
Carriage Outwards	1,570
Wages and Salaries	10,240
Rent paid	3,015
Delivery expenses	624
Discount allowed	216
Insurance	405
General expenses	318
TOTAL EXPENSES		16,388
Income from continuing operations before income taxes (16,563 - 16,388)		175
Less: Income taxes		-
Income from continuing operations		175
Discontinued Operations		-
Extra-ordinary items		-
Net Income		175

Jackie Chong Trading
Statement of Financial Position
As at ended 31 March 2016
Particulars	Amount	Amount
ASSETS
Current Assets:
Cash at bank	2,970
Cash in hand	675
Inventory	10,700
Trade Receivables	14,320
Total Current Assets		28,665
Fixed Assets:
Premises	20,000
Furniture and fittings	2,850
Total Fixed Assets		22,850
Total Assets		51,515
LIABILITIES
Current Liabilities:
Trade payables		8,160
Non Current Liabilities		-
Owners Equity
Capital less drawings (50,800-7,620)	43,180
Net Income	175
Total Owners Equity		43,355
Total Equity and Liabilities		51,515